Regulation 19 Guarantee fund and minimum guarantee fund

Subject to paragraphs (2) and (3) below, one-third of a required margin of solvency (being, in the case of long term business, the required margin of solvency determined in accordance with the provisions of regulations 13 to 17 above and arrived at, where applicable, in accordance with regulation 18 above) shall constitute the amount (“the guarantee fund”) prescribed for the purposes of regulation 31 below.

The guarantee fund shall not be less than an amount (“the minimum guarantee fund”) arrived at in accordance with regulation 20 below.

Items that are not implicit items within the meaning of regulation 21(3) below must be at least large enough to cover either the minimum guarantee fund or 50 per cent of the guarantee fund, whichever is the greater.